About facility tax rates

Facility taxes provide the ability to define tax rates at levels lower than province/state. For example, tax may be charged at the city and/or county levels. Customer tax exemptions by facility are available or shop invoices.

Taxes will be paid to a single collection point and will be rolled into a single percentage that is applied at the facility level. For example, if there are 2%city taxes, 3% county taxes, and 5% state taxes, a rate of 10%will be defined for the facility, and the entire 10% will go to a single GL account. It is then your responsibility to send the money to the correct remittance center.

You must use the correct process to roll the tax levels together to arrive at the facility rate. If the tax levels are all calculated side-by-side, then simply adding them together is sufficient. If a tax is applied on top of another tax (i.e. county tax is to be paid on the city tax portion), you must reflect that in the rate accordingly.

Only those facilities residing in areas other than province/state level taxes will need to define rates by facility. If no additional taxes apply, you can use the province/state taxes and leave the facility rate table empty. As well, if you have already defined multiple provinces/states to simulate additional taxes, you can continue with that structure.

For shop purposes, the tax code against which the facility rates apply will be the one defined in the business parameters as the Tax Code-PST.

Customer tax exemptions apply to the entire cost type and tax code (e.g. PST for material). If a facility has a combined rate (e.g. for city, county, state), there is no way to exempt a customer for a particular level of the structure -- it is all or nothing in terms of the exemption.

When facility tax is being self-assessed on the close of a work order line, the repair facility rates are used for labor and the assigned facility rates are used for material.

It is assumed that an Enrich client will not use the equipment type PST rates AND facility rates for the same location.

GST account types can be defined at the facility level for accounting purposes.

Set up facility tax rates or back to Facility Tables